UK based property crowdfunding platform Property Partner is now offering a new investment vehicle. According to a note from the company, the “online property stock exchange” is adding high yield loans to its offerings. These development finance loans are expected to deliver a net return of 10% during a 15 month term. Property Partner currently offers equity investments in residential, purpose-built student accommodation (PBSA) and commercial properties.
In the first of a series of planned bond launches, Property Partner has partnered with development finance firm Proseed Capital to offer its first debt investment in a residential property development. The initial development is a project to develop apartments at Regent House, Basildon.
Property Partner states that unlike traditional forms of development finance, where details of individual investments can be opaque, every investment opportunity on the platform will come with the same level of transparency that investors have come to expect.
Marshall King, Property Partner’s CEO, said that investing in development finance has been incredibly opaque and complicated, needlessly so.
“It’s been the preserve of corporates and people with friends in the right places. We’re changing this and bringing a valuable part of the property investment world to more people than ever before. As we do with all types of property investing, we’re making development finance easier and more transparent than ever before. That means, unlike anywhere else, all our extensive due diligence will be presented up-front, giving investors the chance to dig deeper into the deal before making an investment decision. Clients are increasingly asking us what’s next from the platform and we’ve seen strong demand for a debt product. This partnership with Proseed enables us to bring new investment opportunities to investors with a higher risk-return appetite. Proseed’s approach to due diligence closely aligns with Property Partner’s approach to selecting properties. We look forward to working together.”
Proseed’s CEO, Richard Rawlins, added that their track record was strong as all of their funded projects have been repaid in the past and capital and interest paid in full. He continues to believe there are strong opportunities from established developers across the UK.
“Partnering with Property Partner will allow us to take advantage of our significant pipeline of development opportunities and to open up these opportunities to a larger, new group of interested investors.”
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